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Two-thirds of US shale oil rigs shut down – Total CEO

The Keystone Pipeline was supposed to carry what?

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American shale drillers have closed two-thirds of all the country’s oil rigs; TASS quotes the head of France’s Total Patrick Pouyanne.

“Since March 2015 we are witnessing a decline in oil shale output in the United States, which has been reduced by 500,000 barrels per day. We don’t know how fast it will fall but we know that two-thirds of drilling rigs is no more working there,” Pouyanne said on Thursday at the International Petroleum Week forum.

Oversupply of oil on the global market amounts to two percent according to Pouyanne, and the price of it is now impossible to predict.

“The price of oil is unstable right now; it can stand at $40 a barrel today and reach $80 a barrel tomorrow…,” said Total’s CEO.

The price of shale oil on the US market has fallen by two-thirds while production by 15 percent, according to the head of Russia’s Rosneft Igor Sechin.  “Shale oil production in the United States will decline in the long-term and reach bottom by 2020,” Sechin said.

Falling oil prices have reduced the profitability of oil extraction which impacts drilling activity. In the early part of last year, the US rig count was down 850 from the year before. About 17,000 oil and gas workers in the US lost their jobs in 2015. When adding the oilfield support jobs lost in refineries and petrochemical plants, the actual number of related layoffs grew to about 87,000, according to Michael Planet, an economist at the Dallas Fed.

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Posted by on February 11, 2016, With 1613 Reads Filed under Economy & Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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4 Responses to "Two-thirds of US shale oil rigs shut down – Total CEO"

  1. Ramirez  February 12, 2016 at 3:30 pm

    Time for free energy Tesla style, or free oil, this b.s. HAS to stop.

    Simple as that.

  2. captain obvious  February 12, 2016 at 5:23 am

    why dont they move those drilling rigs near nuclear powerplants to go after geothermal steam to spin the dynamo turbines?.. because big energy doesnt want dirt cheap environmentally clean electricity available that would stop their weaponized “depleted uranium” manufacturing, or people charging up electric cars for pennies..

  3. Altimometer  February 12, 2016 at 1:35 am

    These frackers were destroying aquifers with toxins while getting paid to do this criminality from oil extraction. With oligarchs drooling at snapping up water systems and poisoning under ground water we are more likely as not, looking at another racketeering gig. The tip of the iceberg is coming into view and these are too big to fail lenders that passed the “stress” test working another sub_________ fill in the blank, placing someone on the hook again.

  4. NotAVeteran2  February 12, 2016 at 12:57 am

    Good news.

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